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CMA Final · Corporate and Economic Laws · Prevention of Oppression and Mismanagement

Under the provisions on relief in cases of oppression, which of the following may itself apply to the Tribunal for an order if it is of the opinion that the affairs of a company are being conducted in a manner prejudicial to public interest?

The Central Government may itself apply to the Tribunal when it is of the opinion that the company's affairs are conducted in a manner prejudicial to public interest. Section 241(2) gives this power to the Central Government; the Registrar, debenture trustees and auditors are not given it.

  1. AThe Registrar of Companies acting on a creditor's complaint
  2. BThe Central GovernmentCorrect
  3. CAny debenture trustee of the company
  4. DThe statutory auditor of the company

Explanation

Section 241(2) states that the Central Government, if of the opinion that the company's affairs are being conducted in a manner prejudicial to public interest, may itself apply to the Tribunal. The other persons named have no such power under this sub-section.

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